Business law: Do I need contracts for every employee?

On Behalf of | Mar 6, 2019 | Business Law, Firm News

Contracts can protect Pennsylvania business owners in many circumstances. It is wise to have a contract with customers when performing a service so both sides understand the expectations and obligations. Employee contracts are also a helpful part of business law since they can clarify what an employer requires of workers and what the worker can expect in return. However, some positions carry an implied contract that does not need a formal agreement.

It may be difficult to know when a contract is beneficial, but some guidelines may be helpful. For example, if an employee has special skills or will undergo extensive training for the job, an employer may find it difficult to replace that worker. A contract may restrict the worker’s ability to quit or motivate him or her to commit to a long term employment.

Employers may also ask new hires to sign contracts if their jobs will expose them to confidential information or trade secrets. An employment contract can explain the limitations the position places, such as restricting the new hire from working for a competitor for a certain period of time after quitting. Contracts can also be useful in outlining the duties of a position and the benefits the employee can expect.

Because most employment contracts carry restrictive covenants and other binding terms, it is important for anyone using such contracts to be precise with the language in the documents. A contract that is too rigid may be unenforceable, but one that is too vague may leave an employer open to trouble. Seeking advice from a Pennsylvania business law attorney can provide guidance for creating solid contracts and assistance when facing contract breaches.

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